Steel Company Pulls Back To Resistance Level Turned Support
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Nucor Corp. engages in the manufacturing of steel and steel products. It operates through the following segments: Steel Mills, Steel Products, and Raw Materials.
Take a look at the 1-year chart of Nucor (NUE) below with the added notations:
Chart of NUE provided by TradingView
Over the course of the past 9 months, NUE has formed an important level to watch at the $146 mark (orange), as that level has provided both support and resistance on many occasions. The stock just broke back above $146 last week, and that should lead to higher prices for NUE.
The Tale of the Tape: NUE has a key level at $146. A trader could enter a long position on a pullback down to that level with a stop placed below it. However, if traders are bearish on the stock, a short trade could be made on a break back below $146 instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
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